§ 1. The Ban: What It Covers
Okla. Stat. tit. 15, § 217-219A. Non-competes are void under Oklahoma statute. A person cannot be restrained from engaging in a lawful profession, trade, or business. Non-solicitation of existing customers is still enforceable.
§ 2. Exceptions to the Ban
While Oklahoma broadly prohibits non-compete agreements, the following exceptions remain:
- Sale-of-business exception
- Partnership dissolution
- Non-solicitation of existing customers IS enforceable
§ 3. Choice-of-Law Clauses: The Hidden Risk
Even though Oklahomabans non-competes, your agreement may contain a choice-of-law clause selecting another state's law — for example, "This agreement shall be governed by the laws of Delaware." If your employer is headquartered in a state that enforces non-competes, they may argue that state's law applies to your agreement. Whether such a clause is enforceable against a Oklahoma resident depends on several factors, including where you performed work, where the employer is located, and recent legislation addressing this exact issue.
§ 4. Non-Solicitation & NDAs: Still Enforceable
Oklahoma's ban on non-competes does not extend to non-solicitation agreements or non-disclosure agreements (NDAs). Employers can still prohibit you from soliciting their clients, customers, or employees after you leave. These restrictions can be broad enough to function as de facto non-competes, depending on how they are drafted. If your agreement includes non-solicitation or confidentiality provisions, those may remain fully enforceable even though the non-compete clause itself is void.
Practitioner Notes
Non-solicitation of existing customers is explicitly allowed under § 219A, even though non-competes are banned.